Once you are a successful trader who can generate profits consistently you start to have many more options and opportunities to make money.

The best thing is that you don’t necessarily have to go down the traditional route of depositing a sufficient amount of money to trade for yourself, but just the fact that you have a profitable strategy and that you are capable of generating profits will open up several great opportunities to earn an income.

One of those ways is providing strategies (or better-said trades) for other traders to copy. This is generally known as copy trading and can be very profitable for both the strategy provider and the copier. For strategy providers, it is a great way to boost your earnings that can range from very little at the beginning to something that can be your main source of income once you amass enough followers.

Recently, the hottest topic in the world of financial markets is the planned ESMA regulation for sure, not only restricting trading binary options completely, but it also limits the use of financial leverage followingly:

We are constantly presented with ads and offers for different types of products and services every day of our lives. Some of them are good offers of great value, some of them are OK and some of them are almost pure scams that are not worth 1 cent.

Paying for overpriced items is never good - that is unless paying a lot of money makes you feel good.

In investing and in life generally, we want to pay for assets, products or services that are at least at a fair price in order for those to be valuable in the longer term.

The foreign exchange market provides opportunities to make money on a daily basis, but not everyone has the skills to capitalize on those opportunities or the necessary time to do so.

The fact of the matter is that Forex trading is not something that’s easy to do, and like most demanding professions, it requires a fair amount of knowledge and experience in order to be able to do it right.

Consequently, it makes sense to leave trading to those that are really good at it if you are someone who doesn’t have the time to analyze the Forex charts on a daily basis. One of the simplest ways to do that is to start copying trading signals from Forex traders who are already profitable. However, profits are not guaranteed and there are certainly some dirty practices in this sphere of Forex trading as well.

The psychology of trading is an integral part of every one of us. Markets are a kind of a living organism the development of which we try to analyze using rational approach, which creates a gap between the expectations and the final result.

In trading psychology, losing is one of the key areas one needs to not only work hard on but also understand his approach towards it.

Generally, it is seen as something negative and everybody wants to avoid it, but experienced traders realize that losing is the only thing we can control through money management.

The approach towards losses is clear: they have to be as small as possible. The lower a loss is the better.

The Forex calendar is one of the most basic fundamental trading tools that every Forex trader needs, yet so many of them often forget about it or completely neglect it. This is a mistake regardless of whether someone is a scalper, day-trader, swing trader, position trader or whether he trades based only technicals.

There are many reasons why it’s important for any trader to regularly follow the Forex calendar, the most important of which we’ll discuss here.

Developing a profitable strategy to trade the markets is about good risk management habits and getting the probabilities on your side to the maximum. Different strategies produce different results on paper, but as we know, those can differ significantly with your actual results on your live trading account. A good measure of how well you or your strategies are performing can be obtained by looking at the details of your trading history or also known as the track record.

Specifically, there are two key aspects of your account statement that give a valuable insight into how well you are performing as a trader. Essentially, these two key aspects are the relationship between your average winning trade to your average losing trade and the win per trade ratio or also known as the winning percentage.

We’ve all had the experience of having an open position that is showing a rewarding profit (say 50, 100 or 200 pips), but has still not reached our final target. Of course, we by our greedy nature decide to shoot for the final target and hold the position.

Then, before we know it, the market reverses and takes it all away leaving us with an awful-feeling breakeven trade, or even worse – a loss.

A common question in the Forex community, especially asked around a lot by rookie traders, is whether fundamental analysis or technical analysis is better to trade the Fx market.

The truth is hidden somewhere in between. There is no right answer to that question and no one has been able to give a precise and accurate answer as that comes down to subjectivity and preferences. Both technical analysis and fundamental analysis have unique advantages and disadvantages, but, there are several reasons why technical analysis is still king for trading despite the fact that fundamentals often override technicals when it comes to causing the price to move.

There are countless ways for traders to improve their trading sessions. Below are a couple of tips that can be used with almost any trading strategy.

Get to know price action and important price levels on the charts

Price action is, without a doubt, one of the most powerful weapons of many traders today. Price action usually has the highest predictive value because it’s not created by complicated calculations, but by the market.

Many traders think that knowing price charts is a waste of time, but they could not be more wrong.

Price actionis a multitude of important chart patterns and formations which also shapes important price levels. Those are levels at which the market often turns around or breaks through and then continues to follow the newly set trend, so therefore, every trader should pay attention to these levels.

Anyone who is into Forex trading more seriously has probably started with one ultimate goal – to be able to live from the generated profits by trading the currency market. Novice traders, however, commonly misunderstand how this can be done - largely due to misleading advertisements and sales schemes by Forex companies.

These misconceptions regarding Forex trading as a source of income can lead to large losses for the traders as they take on excessive risk based on unrealistic expectations. As we’ve discussed a countless number of times in our posts here at Fx Trading Revolution, risk management is the most important pillar for first, surviving in Forex trading and then being profitable in the long run.

So, without any further ado, let’s get into clearing up some misconceptions regarding Forex trading as a source of income and how much capital would one need to deposit in their Forex account in order be able to generate an income from it.

The last type of trader that we will discuss in our series on Tharp’s trading personality types is the Values-Driven Trader.

According to Dr. Van K. Tharp, these traders fall in the average group of 10 trader types who have relatively good prospects for becoming profitable if they are willing to work hard for it.

Values-Driven Forex Traders are generally independent individuals that are able to make good and rational decisions. They tend to be realistic, they know what their values in life are and they are mainly driven by them – including, to a large degree in trading as well.

Generally, those values for them would be people and relationships, life principles and material possessions.

We often hear that we should not plot too many lines and/or indicators on our charts when we trade Forex. This advice and the reasons cited behind it are certainly valid.

In fact, paralysis by analysis is a common but hidden obstacle that many traders face toward achieving long-term success in Forex. Statistically, it has been shown over the years that the traders who are most successful are masters only at a few technical tools and beyond that they don’t even look at other technical indicators - let alone take trades based on them. And, there are even many continuously profitable Forex traders who use nothing but price action.

Stop-loss trading orders are one of the most important parts of every forex trader’s strategy. Naturally, there are traders who are brave enough to trade without stop-loss orders or other kinds of capital protection, but it can be very hard for them to achieve stable results long-term.

Because this article’s primary goal isn’t to convince you stop-loss orders are important but to show you how to use them appropriately, let’s have a look at how to work with them and the possibilities of stop-loss order placement.

Depending on the entry point, that is the candlestick, stop loss orders can be placed two different ways:

Forex traders of the “Supportive Type” as Dr. Van K. Tharp designated them, are one of the only three psychological trading profiles that need to put in the most effort and work in order to succeed in trading in the long run.

The supportive Trader together with the Fun-Loving and the Artistic Trader make up the 3 psychological profiles that Tharp judged to be the least likely to become successful and profitable traders.

This type of a trader, however, will often find it very helpful to work in a group or together with others. Even letting someone else trade their money is a very good option for them since they lack a lot of key qualities that are important for traders.

Having others trade for them can be a much better way for those who simply are not suited for the trading arena. After all, they might have another job and be really good at other things but not everyone can be great at trading, and realizing that is an important part of being successful. Once one is aware of their weaknesses they can deal with them in an appropriate manner and one way to do it in case of trading is to let a professional trade for you.

Many traders who are starting out in Forex are wondering what would be an appropriate amount of money to start trading in the world’s largest financial market.

Maybe they’ve just found out about the opportunities that Forex trading offers or perhaps they’ve demo traded for a while and now feel they have a profitable strategy that they want to implement on a live account.

The answer to the question “How much should I start with in Forex trading?” depends on several factors that we will explore in this article. But, first of all, one word of advice: Don’t be misled by the minimum deposits that you see on many brokers’ websites as part of their requirements to start trading.

High Risk Warning: Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

Any opinions, news, research, predictions, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. FX Trading Revolution will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.